"The acquisition cost has been ascertained at Rs 15.07 crore after taking into consideration the report on valuation of fixed assets and net current assets at book value of the pipe division's assets," said a release issued by the company. Roofit Industries plans to fund the cost of acquisition through a preferential issue of equity shares.

The operational restructuring initiated by the Rs 300 crore Motwani group will expand expand Roofit's marketshare in the asbestos industry and impart versatility to the product profile of the company.

The move, the company claims, will boost the sales turnover of Roofit by Rs 35 crore while adding close to Rs 3 crore to its bottomline.

"The plant can be imparted versatility by introducing a minormodification in its design for manufacturing AC sheets in addition to AC pipes. With this, the plant can be used to exploit market conditions more advantageously," Roofit has said.

With this recast, Sun Earth Ceramics will concentrate on its core business of manufacturing ceramic tiles and vitrified tiles.

Roofit Industries has reported a net profit of Rs 9.43 crore for the nine month period ended March 1999, which was 27 per cent up on an annualised basis. The company posted 30 per cent increase in sales for the same period on an annualised basis at Rs 93.60 crore, as against Rs 108.19 crore for the same period in previous year.

"The performance of the company, particularly the steady improvement in sales and earnings during the last few years, is all the more significant considering that the industry is in the grip of recessionary conditions. The company has decided to focus on developing newer and hitherto unexplored rural and semi-urban markets - a strategy which has proved successful," Roofitadded.